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Framing effect

Changing a judgment because equivalent information is presented in different ways.

Published 04 August 2026Updated 04 August 2026

The framing effect appears when wording an outcome as a gain, loss, success rate, or failure rate changes preferences even though the underlying facts are equivalent. Translate each option into the same neutral units and compare outcomes side by side.

Sources

Prospect Theory: An Analysis of Decision under Risk

Econometrica / 1979 / Paper

Reference for loss aversion and framing effects.